Bancolombia (CIB) 6-K Current report (foreign)

4Q13

BANCOLOMBIA S.A. (NYSE: CIB; BVC: BCOLOMBIA, PFBCOLOM) REPORTS CONSOLIDATED NET INCOME OF COP 489 BILLION FOR THE FOURTH QUARTER OF 2013 (COP 574 PER SHARE - USD 1.19 PER ADR), WHICH REPRESENTS AN INCREASE OF 51% COMPARED TO THE SAME QUARTER LAST YEAR.

· The bank showed a strong and healthy growth in assets during 4Q13.Bancolombia’s assets grew 15.1% during the quarter and 33.6% during 2013. The annual growth was explained 14.6% by the contribution of Banistmo (formerly HSBC Panama) and 19% by the organic growth of the existing operation before the consolidation of Banistmo.

· Past due loans as a percentage of total loans remain low in 4Q13. 30 days (or more) past due loans as a percentage of total gross loans were 2.9%. Net provision charges for past due loans and foreclosed assets totaled COP 273 billion, which represents 1.30% of gross loans when annualized, an improvement compared to the 1.50% reported in 3Q13 and the 1.99% in 4Q12.

· Loan portfolio coverage remains at high levels.At the end of 4Q13, the ratio between allowances for loans losses and 30-days past due loans was 157%, indicating that Bancolombia has sufficient reserves to maintain its business operation and has a strong and healthy balance.

· The bank improved its liquidity position. Deposits grew 20percent during 4Q13 and 35% during 2013 and the ratio of net loans to deposits ended at 94%. This annual growth was explained, 17% by the contribution of Banistmo (formerly HSBC Panama) and 19% by the organic growth of the existing operation before consolidation Banistmo. The weighted cost of deposits at the end of 4Q13 was 2.6%, less than the 2.7% reported in 3Q13 and the 3.3% in 4Q12.

March 17, 2014. Medellín, Colombia – Today, BANCOLOMBIA S.A. (“Bancolombia” or “the Bank”) announced its earnings results for the fourth quarter of 2013.

For the quarter ended on December 31, 2013 (“4Q13”), Bancolombia reported consolidated net income of COP 489 billion, or COP 574 per share - USD 1.19 per ADR, which represents an increase of 51% as compared to the results for the quarter ended on September 30, 2013 (“3Q13”) and an increase of 4.5% as compared to the results for the quarter ended on December 31, 2012 (“4Q12”).

Bancolombia ended 4Q13 with COP 130,816 billion in assets, 15.1% higher than those at the end of 3Q13 and 33.6% greater than those at the end of 4Q12. At the same time, liabilities totaled COP 118,323 billion, increasing 16.4% as compared to the figure presented in 3Q13 and 37.1% as compared to 4Q12¹.

¹ This report corresponds to the consolidated financial statements of BANCOLOMBIA S.A. (“BANCOLOMBIA”) and its affiliates of which it owns, directly or indirectly more than 50% of the voting capital stock. These financial statements have been prepared in accordance with generally accepted accounting principles in Colombia and the regulations of Superintendencia Financiera de Colombia, collectively COL GAAP. BANCOLOMBIA maintains accounting records in Colombian pesos, referred to herein as “Ps.” or “COP”. Certain monetary amounts, percentages and other figures included in this report have been subject to rounding adjustments. There have been no changes to the Bank's principalaccounting policies in the quarter ended December 31, 2013. The statements of income for the quarter ended December 31, 2013 are not necessarily indicative of the results for any other future interim period. For more information, please refer to the Bank's filings with the Securities and Exchange Commission, which are available on the Commission's website atwww.sec.gov.

CAUTIONARY NOTE REGARDING FORWARD LOOKING STATEMENTS: This release contains statements that may be considered forward-looking statements within the meaning of Section 27A of the U.S. Securities Act of 1933 and Section 21E of the U.S. Securities Exchange Act of 1934. All forward-looking statements, whether made in this release or in future filings or press releases or orally, address matters that involve risks and uncertainties; consequently, there are or will be factors, including, among others, changes in general economic and business conditions, changes in currency exchange rates and interest rates, introduction of competing products by other companies, lack of acceptances of new products or services by our targeted customers, changes in business strategy and various others factors, that could cause actual results to differ materially from those indicated in such statements. We do not intend, and do not assume any obligation, to update these forward-looking statements. Certain monetary amounts, percentages and other figures included in this report have been subject to rounding adjustments. Any reference to BANCOLOMBIA means the Bank together with its affiliates, unless otherwise specified.

Representative Market Rate January 1, 2014 $$1.926,83 = US$ 1

1

4Q13

BANCOLOMBIA: Summary of consolidated financial quarterly results²

CONSOLIDATED BALANCE SHEET
AND INCOME STATEMENT	Quarter									Growth
(COP millions)	4Q12			3Q13			4Q13			4Q13/3Q13			4Q13/4Q12
ASSETS
Loans and financial leases, net		66,739,040			74,727,617			85,394,012			14.27	%		27.95	%
Investment securities, net		12,554,311			14,523,348			13,805,790			-4.94	%		9.97	%
Other assets		18,623,029			24,417,371			31,616,439			29.48	%		69.77	%
Total assets		97,916,380			113,668,336			130,816,241			15.09	%		33.60	%
LIABILITIES AND SHAREHOLDERS' EQUITY
Deposits		64,158,720			72,013,506			86,556,579			20.19	%		34.91	%
Non-interest bearing		9,798,874			9,217,936			14,680,487			59.26	%		49.82	%
Interest bearing		54,359,846			62,795,570			71,876,092			14.46	%		32.22	%
Other liabilities		22,150,705			29,655,143			31,766,816			7.12	%		43.41	%
Total liabilities		86,309,425			101,668,649			118,323,395			16.38	%		37.09	%
Shareholders' equity		11,606,955			11,999,687			12,492,846			4.11	%		7.63	%
Total liabilities and shareholders' equity		97,916,380			113,668,336			130,816,241			15.09	%		33.60	%
Interest income		2,034,208			1,979,128			2,151,683			8.72	%		5.77	%
Interest expense		794,120			758,928			803,137			5.83	%		1.14	%
Net interest income		1,240,088			1,220,200			1,348,546			10.52	%		8.75	%
Net provisions		(334,677	)		(289,233	)		(272,919	)		-5.64	%		-18.45	%
Fees and income from service, net		494,479			460,540			525,018			14.00	%		6.18	%
Other operating income		196,251			217,172			257,790			18.70	%		31.36	%
Total operating expense		(1,054,978	)		(1,143,502	)		(1,207,369	)		5.59	%		14.44	%
Goodwill amortization		(11,165	)		(12,745	)		(38,335	)		200.78	%		243.35	%
Non-operating income, net		6,135			(4,687	)		20,061			528.01	%		226.99	%
Income tax expense		(68,371	)		(123,820	)		(144,052	)		16.34	%		110.69	%
Net income		467,762			323,925			488,740			50.88	%		4.48	%

PRINCIPAL RATIOS				Quarter						As of
	4Q12			3Q13			4Q13			Dec-12			Dec-13
PROFITABILITY
Net interest margin(1)		6.28	%		5.27	%		5.33	%		6.49	%		5.48	%
Return on average total assets(2)		1.97	%		1.16	%		1.56	%		1.92	%		1.37	%
Return on average shareholders´ equity(3)		16.47	%		10.95	%		15.97	%		15.97	%		12.76	%
EFFICIENCY
Operating expenses to net operating income		55.22	%		60.92	%		58.45	%		56.19	%		59.75	%
Operating expenses to average total assets		4.49	%		4.15	%		3.99	%		4.69	%		4.19	%
CAPITAL ADEQUACY
Shareholders' equity to total assets		11.85	%		10.56	%		9.55	%		11.85	%		9.55	%
Technical capital to risk weighted assets		15.77	%		15.30	%		10.61	%		15.77	%		10.61	%
KEY FINANCIAL HIGHLIGHTS
Net income per ADS (USD)		1.24			0.80			1.19
Net income per share $COP		549.13			380.27			573.75
P/BV ADS (4)		2.16			1.95			1.61
P/BV Local(5) (6)		2.20			1.91			1.62
P/E (7)		13.55			17.83			10.34
ADR price (8)		66.58			57.54			49.02
Common share price (8)		30,000			26,900			23,820
Shares outstanding (9)		851,827,000			851,827,000			851,827,000
USD exchange rate (quarter end)		1,768.23			1,908.29			1,926.83

(1) Defined as net interest income divided by monthly average interest-earning assets. (2) Net income divided by monthly average assets. (3) Net income divided by monthly average shareholders' equity. (4) Defined as ADS price divided by ADS book value. (5) Defined as share price divided by share book value. (6) Share prices on the Colombian Stock Exchange; (7) Defined as market capitalization divided by annualized quarter results. (8) Prices at the end of the respective quarter. (9) Common and preferred.

2

4Q13

1. BALANCE SHEET

1.1. Assets

As of December 31, 2013, Bancolombia’s assets totaled COP 130,816 billion, which represents an increase of 15.1% compared to 3Q13 and an increase of 33.6% compared to 4Q12.

The annual growth of the assets was explained 14.6% by the contribution of Banistmo and 19% by the organic growth of the existing operation before the consolidation of Banistmo. It is highlighted the growth of loans and finance leases, which represented 65% of the assets at the end of 4Q13.

1.2. Loan Portfolio

The following table shows the composition of Bancolombia’s investments and loans by type and currency:

(COP Million)	Amounts in COP									Amounts in USD converted to COP									Amounts in USD (thousands)									Total
(1 USD = 1926,83 COP)				4Q13/3Q13			4Q13/4Q12						4Q13/3Q13			4Q13/4Q12						4Q13/3Q13			4Q13/4Q12						4Q13/3Q13			4Q13/4Q12
Net investment securities		10,060,478			3.07	%		-0.51	%		3,745,312			-21.36	%		53.35	%		1,943,769			-21.36	%		40.73	%		13,805,790			-4.94	%		9.97	%
Gross Loans		61,527,941			1.26	%		14.54	%		27,931,601			58.19	%		71.65	%		14,496,142			58.19	%		57.52	%		89,459,542			14.08	%		27.82	%
Commercial loans		33,788,752			-0.78	%		13.07	%		18,574,767			37.48	%		47.63	%		9,640,065			37.48	%		35.48	%		52,363,519			10.09	%		23.31	%
Consumer loans		12,075,048			2.61	%		14.51	%		4,526,842			92.84	%		122.42	%		2,349,373			92.84	%		104.11	%		16,601,890			17.62	%		31.96	%
Small  business loans		391,309			6.98	%		28.83	%		125,458			353.38	%		306.71	%		65,111			353.38	%		273.23	%		516,767			31.34	%		54.45	%
Mortgage loans		6,616,309			5.78	%		27.22	%		3,679,621			338.64	%		386.01	%		1,909,676			338.64	%		346.00	%		10,295,930			45.14	%		72.81	%
Finance lease		8,656,523			4.06	%		11.22	%		1,024,913			9.94	%		18.21	%		531,917			9.94	%		8.48	%		9,681,436			4.7	%		11.9	%
Allowance for loan losses		(3,392,580	)		1.16	%		15.87	%		(672,950	)		100.51	%		109.22	%		(349,252	)		100.51	%		92.00	%		(4,065,530	)		10.20	%		25.11	%
Net total loans and fin. leases		58,135,361			1.27	%		14.47	%		27,258,651			57.37	%		70.89	%		14,146,889			57.37	%		56.83	%		85,394,012			14.27	%		27.95	%
Operating leases, net		2,825,245			3.32	%		35.16	%		93,936			2.48	%		-7.64	%		48,752			2.48	%		-15.24	%		2,919,181			3.29	%		33.18	%
Total assets		88,861,014			6.56	%		9.30	%		41,955,641			38.56	%		152.49	%		21,774,438			38.56	%		131.71	%		130,816,655			15.09	%		33.60	%
Total deposits		63,101,253			8.25	%		20.04	%		23,455,326			70.92	%		102.31	%		12,173,013			70.92	%		85.65	%		86,556,579			20.19	%		34.91	%
Total liabilities		77,553,432			7.50	%		9.23	%		40,766,617			38.08	%		166.28	%		21,157,350			38.08	%		144.36	%		118,320,049			16.38	%		37.09	%

The most relevant aspects regarding the evolution of the loan portfolio during 4Q13 were:

·         The growth of commercial, consumer and mortgage loans in Colombia during 4Q13 indicates a sustained credit demand.

·         Net loans in USD correspond to loans originated in Colombia (USD 4,321 million, 30%), El Salvador (USD 2,661 million, 19%), Panamá (USD 6,878 million, 48%), and other countries (USD 421 million, 3%). USD denominated loans represented 32% of total loans as of 4Q13.

·         COP depreciated 1.0% versus USD during 4Q13 and 9.0% during 2013.

·         Mortgage loans denominated in COP presented a dynamic performance. The dynamism of mortgage lending in Colombia is explained by the lower long-term interest rates, as well as by the Colombian government’s interest rate subsidy programs. On the other hand, the mortgage balance denominated in USD from our operation in El Salvador and Panama represented 36% of the mortgage loans at the end of 4Q13.

·         Financial leases, of which 89% are denominated in COP, increased 4.7% during the quarter and 11.9% as compared to 4Q12. Operating leases, net of depreciation, increased 3.3% during 4Q13 and 33.2% in the last 12 months. These two products are mainly used by enterprises in order to finance equipment, commercial real estate and commercial vehicles.

When analyzing the loan portfolio according to the customer categories established by Bancolombia in order to manage its commercial strategy (see table below), it becomes clear that commercial loans led the growth during 4Q13, as they increased 12.1% with respect to 3Q13, in part by the consolidation of the commercial loan portfolio of Banistmo. The organic increase is explained by the credit demand for business investment. This is the segment that contributes the most to the nominal growth of the total loan book. Consumer and SMEs loans increased 11.7% when compared with 3Q13, which indicates a sustained credit demand under strict underwriting criteria.

3

4Q13

Total reserves (allowances in balance sheet) for loan losses increased by 10.2% during 4Q13 and totaled COP 4,066 billion, or 4.5% of gross loans at the end of the quarter. For further explanation regarding coverage of the loan portfolio and credit quality trends, see section “2.4. Asset Quality, Provision Charges and Balance Sheet Strength”.

The following table summarizes Bancolombia’s total loan portfolio:

LOAN PORTFOLIO				As of						Growth						% of Total			% of
(COP million)	Dec-12			Sep-13			Dec-13			4Q13/3Q13			4Q13/4Q12			loans			Category
CORPORATE
Working capital loans		30,493,677			34,072,869			33,992,771			-0.24	%		11.47	%		38.00	%		82.28	%
Funded by domestic development banks		261,701			417,679			489,798			17.27	%		87.16	%		0.55	%		1.19	%
Trade Financing		2,215,613			2,076,044			6,706,315			223.03	%		202.68	%		7.50	%		16.23	%
Overdrafts		103,434			239,602			80,023			-66.60	%		-22.63	%		0.09	%		0.19	%
Credit Cards		35,619			42,252			42,406			0.36	%		19.05	%		0.05	%		0.10	%
TOTAL CORPORATE		33,110,044			36,848,446			41,311,313			12.11	%		24.77	%		46.18	%		100.00	%
RETAIL AND SMEs
Working capital loans		8,426,695			9,534,830			9,666,234			1.38	%		14.71	%		10.81	%		34.31	%
Personal loans		6,820,922			7,850,183			9,573,141			21.95	%		40.35	%		10.70	%		33.98	%
Loans funded by   domestic development banks		863,025			1,086,850			1,319,245			21.38	%		52.86	%		1.47	%		4.68	%
Credit Cards		3,672,766			4,041,083			4,548,670			12.56	%		23.85	%		5.08	%		16.15	%
Overdrafts		223,550			315,850			251,724			-20.30	%		12.60	%		0.28	%		0.89	%
Automobile loans		2,155,547			2,284,997			2,577,704			12.81	%		19.58	%		2.88	%		9.15	%
Trade Financing		108,363			110,153			234,145			112.56	%		116.07	%		0.26	%		0.83	%
TOTAL RETAIL AND SMEs		22,270,868			25,223,946			28,170,863			11.68	%		26.49	%		31.49	%		100.00	%
MORTGAGE		5,957,824			7,093,610			10,295,930			45.14	%		72.81	%		11.51	%		100.00	%
FINANCIAL LEASES		8,649,943			9,250,968			9,681,436			4.65	%		11.92	%		10.82	%		100.00	%
Total loans and financial leases		69,988,679			78,416,970			89,459,542			14.08	%		27.82	%		100.00	%		100.00	%
Allowance for loan losses		(3,249,639	)		(3,689,353	)		(4,065,530	)		10.20	%		25.11	%
Total loans and financial leases, net		66,739,040			74,727,617			85,394,012			14.27	%		27.95	%

1.3. Investment Portfolio

As of December 31, 2013, Bancolombia’s net investment portfolio totaled COP 13,806 billion, 4.9% lower than that reported in 3Q13 and 10.0% higher when compared to that reported in 4Q12. The investment portfolio consisted primarily of debt investment securities, which represented 88% of Bancolombia’s total investments and 9% of assets at the end of 4Q13. Investments denominated in USD totaled USD 1,944 million and represented 27% of the investment portfolio.

Additionally, the Bank had COP 952 billion in net mortgage backed securities, which represented 6.9% of the investment portfolio.

After the loss in value in the securities portfolio in 2Q13 because of the expectations of a reduction in the monetary stimulus in the U.S., Bancolombia's strategy focused on reducing volatility and duration of the portfolio in order to minimize the impact on the bank's results. At the end of 4Q13, the portfolio of investments in debt securities had a duration of 15.3 months and a yield to maturity of 4.1%.

1.4. Goodwill

As of 4Q13, Bancolombia’s goodwill totaled COP 3,589 billion, increasing 525.7% compared to the amount reported in 3Q13 and 528.2% compared to 4Q12. This variation is explained by the acquisition of Banistmo which generated goodwill of approximately 1.500 million USD. Under COL GAAP, goodwill is amortized within a maximum period of 20 years.

4

4Q13

1.5. Funding

As of December 31, 2013, Bancolombia’s liabilities totaled COP 118,323 billion, increasing 16.4% compared to 3Q13 and 37.1% compared to 4Q12.

Deposits totaled COP 86,557 billion (or 73% of liabilities) at the end of 4Q13, increasing 20% during the quarter and 35% over the last 12 months. The annual growth of the deposits was explained 17% by the contribution of Banistmo and 19% by the organic growth of the bank. The higher growth rate in deposits against net loans led the bank to a better liquidity position, where net loans to deposits ratio (including borrowings from domestic development banks) was 94% at the end of 4Q13, decreasing compared to the 98% reported in 3Q13, and the 104% reported in 4Q12.

Bancolombia´s funding strategy is meant to improve the liquidity position and to encourage non interest bearing checking accounts and savings accounts, and reduce the proportion of time deposits.. This strategy allowed the bank to reduce the cost on deposits during the quarter. The ultimate goal is to defend the net interest margin.

Funding mix
COP Million	4Q12				3Q13				4Q13
Checking accounts		11,298,901	14	%		11,664,539	12	%		16,784,933	15	%
Saving accounts		27,113,914	33	%		29,406,525	30	%		34,649,764	31	%
Time deposits		24,767,489	30	%		30,227,429	31	%		34,058,452	30	%
Other deposits		978,416	1	%		715,013	1	%		1,063,430	1	%
Long term debt		12,059,219	15	%		12,331,172	13	%		12,328,275	11	%
Loans with banks		5,316,443	7	%		12,509,301	13	%		13,632,894	12	%
Total Funds		81,534,382	100	%		96,853,979	100	%		112,517,748	100	%

At the end of 4Q13, Bancolombia had outstanding bonds for USD 3,740 million in international markets and for COP 5,122 billion in local markets. The maturities of these bonds range from 2 to 10 years.

1.6. Shareholders’ Equity and Regulatory Capital

Shareholders’ equity at the end of 4Q13 was COP 12,493 billion, increasing 7.6% or COP 886 billion, with respect to the 11,607 billion reported at the end of 4Q12.

Bancolombia’s capital adequacy ratio was 10.61%, 469 basis points below the 15.3% for 3Q13 and 516 basis points below the 15.77% at the end of 4Q12. This annual decrease in the capital adequacy was due to the implementation in Colombia of a new capital regulation for banks, which increased deductions from the tier 1 calculation.

Bancolombia’s capital adequacy ratio was 161 basis points above the minimum level required by Colombia’s regulator, while the basic capital ratio (Tier 1) to risk weighted assets was 5.8%, 131 basis points above the regulatory minimum of 4.5% . The tangible capital ratio, defined as shareholders’ equity minus goodwill and intangible assets divided by tangible assets, was 6.5% at the end of 4Q13.

TECHNICAL CAPITAL RISK WEIGHTED ASSETS
Consolidated (COP millions)	4Q123			%			3Q13			%			4Q13			%
Basic capital (Tier I)		9,070,487			10.39	%		9,522,134			10.12	%		6,207,425			5.81	%
Additional capital (Tier II)		4,694,203			5.38	%		4,873,451			5.18	%		5,124,336			4.80	%
Technical capital(1)		13,764,690						14,395,585						11,331,761
Risk weighted assets included market risk		87,262,916						94,070,332						106,826,579
CAPITAL ADEQUACY(2)		15.77	%					15.30	%					10.61	%

(1) Technical capital is the sum of basic and additional capital.

(2) Capital adequacy is technical capital divided by risk weighted assets.

(3) Capital adequacy ratios for 3Q12 and 2Q13 are calculated according to the capital rules existing until August 2013

5

4Q13

2. INCOME STATEMENT

Net income totaled COP 489 billion in 4Q13, or COP 574 per share - USD 1.19 per ADR, which represents an increase of 51.0% compared to 3Q13 and 4.5% compared to 4Q12. Bancolombia’s annualized ROE was 16% for 4Q13, and 12.8% for 2013.

2.1. Net Interest Income

Net interest income totaled COP 1,349 billion in 4Q13, 10.5% higher than that reported in 3Q13, and 8.7% higher than the figure for 4Q12. The annual increase in net interest income was driven by the larger size of the loan portfolio, although it was overshadowed by the return on investments during the year, which decreased 50.8% compared to the 4Q12.

During 4Q13, the investment portfolio continued its path of recovery from the losses posted in 2Q13, generating USD 99 billion. The strategy for the last quarters has been maintaining low the volatility and duration of the portfolio.

Net Interest Margin

The annualized net interest margin kept compressing during 4Q13, in line with the trend seen since the end of 4Q12, reaching 5.3% in 4Q13.

The annualized net interest margin for investments was 0.1% due to lower yields on debt securities of the Colombian government and the annualized net interest margin of the loan portfolio, financial leases, overnight funds and interbank loans was 6.0%, negatively impacted by lower interest rates, the change in the composition of the portfolio by type of client, where the corporate credit became more important within the overall portfolio, and the consolidation of Banistmo’s assets denominated in USD Banistmo, in which net interest margin is lower.

Annualized Interest
Margin	4Q11			1Q12			2Q12			3Q12			4Q12			1Q13			2Q13			3Q13			4Q13
Loans' Interest margin		6.7	%		6.8	%		7.0	%		7.1	%		6.9	%		6.6	%		6.4	%		6.2	%		6.0	%
Debt investments' margin		1.2	%		4.1	%		4.1	%		4.0	%		2.9	%		8.0	%		-5.1	%		-0.4	%		0.1	%
Net interest margin		5.9	%		6.5	%		6.6	%		6.6	%		6.3	%		6.8	%		4.7	%		5.3	%		5.3	%

The funding cost decreased during 4Q13 due to the rate cuts and management of the liabilities structure. Savings and checking accounts slightly increased their share during the quarter, and the annualized average weighted cost of deposits was 2.6% in 4Q13, decreasing compared to the 2.7% for 3Q13 and the 3.3% for 4Q12.

Average weighted
funding cost	3Q12			2Q13			3Q13
Checking accounts		0.24	%		0.26	%		0.24	%
Time deposits		5.55	%		4.74	%		4.42	%
Saving accounts		2.86	%		2.22	%		2.03	%
Total deposits		3.47	%		2.87	%		2.69	%
Long term debt		6.59	%		6.06	%		6.12	%
Loans with banks		5.18	%		4.32	%		3.27	%
Total funding cost		4.12	%		3.45	%		3.21	%

6

4Q13

2.2. Fees and Income from Services

During 4Q13, net fees and income from services totaled COP 525 billion, 14.0% higher than those reported in 3Q13 and 6.2% higher compared to those reported in 4Q12. Fees from credit and debit cards increased 32.1% compared to 3Q13 due to higher volume of transactions and the incorporation of this type of income generated for Banistmo in the last two months of the year. Fees from banking services decreased 14.9% compared to 3Q13 because in 4Q13 there was not income from advisory services in structuring capital markets operations, and decreased 15.6% compared to 4Q12; this line includes fees from insurance distribution throughout the distribution networks in Colombia and in El Salvador. Fees from brokerage services increased 10.5% in 4Q13 as compared to 3Q13 and decreased 29.0% as compared to those in 4Q12, explained by seasonality of business.

The following table summarizes Bancolombia’s participation in the credit card business in Colombia:

ACCUMULATED CREDIT CARD BILLING					%			2013
(COP millions)	Dec-12		Dec-13		Growth			Market Share
Bancolombia VISA		425,879		454,068		6.62	%		4.99	%
Bancolombia Mastercard		464,266		598,727		28.96	%		6.58	%
Bancolombia American Express		641,445		687,433		7.17	%		7.55	%
Total Bancolombia		1,531,590		1,740,228		13.62	%		19.12	%
Colombian Credit Card Market		8,425,638		9,102,320		8.03	%

CREDIT CARD MARKET SHARE					%			2013
(Outstanding credit cards)	Dec-12		Dec-13		Growth			Market Share
Bancolombia VISA		2,537,429		2,842,025		12.00	%		7.51	%
Bancolombia Mastercard		2,995,373		3,504,939		17.01	%		9.26	%
Bancolombia American Express		3,724,676		4,013,749		7.76	%		10.60	%
Total Bancolombia		9,257,478		10,360,713		11.92	%		27.37	%
Colombian Credit Card Market		33,878,386		37,860,903		11.76	%
Source: Superintendencia Financiera de Colombia

2.3. Other Operating Income

Total other operating income was COP 258 billion in 4Q13, 18.7% higher than that in 3Q13, and 31.4% higher than in 4Q12. Income from foreign exchange gains and derivatives denominated in foreign currencies increased in the quarter due to the net effect of the active and passive positions the bank had in foreign currency.

During 4Q13 the bank received 8.4 billion in dividends from companies in which Bancolombia and its subsidiaries have interests, especially from Sura Asset Management (COP 3.9 billion) and Bolsa de Valores de Colombia (COP 1 billion).

Revenues aggregated in the communication, rent and others line totaled COP 121.4 billion in 4Q13, which is 1.45% lower as compared to 3Q13 and 7.62% higher as compared to those in 4Q12. This line includes revenues from commercial discounts and operating leases payments, which have increased as the operating leasing business grows.

7

4Q13

2.4. Asset Quality, Provision Charges and Balance Sheet Strength

The quality of the loan portfolio showed a slight deterioration in 4Q13 due to the incorporation of Banistmo’s assets that under Colombian rule resulted in an increase in the past due loans. Colombian standards consider those loans overdue more than 30 days as delinquent while Panamanian law considers them past due after 90 days or more. Thus, past due loans (those that are overdue for more than 30 days) totaled COP 2.597 billion at the end of 4Q13, representing 2.9% of total gross loans for 4Q13, and increasing compared to the 2.7% reported in 3Q13 and the 2.6% reported in 4Q12. Charge-offs totaled COP 282 billion in 4Q13.

The coverage measured by the ratio of allowances for loans losses (principal) to PDLs (overdue 30 days), was 157% at the end of 4Q13, decreasing with respect to the 175% of 3Q13 and the 177% of 4Q12. Likewise, the coverage measured by the ratio of allowances for loans losses to loans classified as C, D and E, was 111% at the end of 4Q13, decreasing with respect to the 120% reported in 3Q13 and the 117% reported in 4Q12. These reductions are explained by the consolidation of Banistmo.

The deterioration of the loan portfolio (new past due loans including charge-offs) was COP 775 billion in 4Q13, which represented 1.0 % of the loan portfolio at the beginning of the quarter, increasing with respect to the COP 144 billion in 4Q12. The loan portfolio of Banistmo that under Colombian rule is considered overdue explains COP 562 billion deterioration presented during the quarter.

Provision charges (net of recoveries) totaled COP 273 billion in 4Q13. Provisions as a percentage of the average gross loans were 1.3% for 4Q13 and 1.59% for 2013.

Bancolombia maintains a strong balance sheet supported on an adequate level of loan loss reserves. Allowances for loan losses totaled COP 4,066 billion, or 4.54% of total loans at the end of 4Q13. This proportion decreased with respect to the 4.70% presented at the end of 3Q13, and with respect to the 4.64% for 4Q12.

The following tables present key metrics related to asset quality:

ASSET QUALITY				As of						Growth
( COP millions)	Dec-12			Sep-13			Dec-13			4Q13/3Q13			4Q13/4Q12
Total performing past due loans(1)		604,375			692,137			967,194			39.74	%		60.03	%
Total non-performing past due loans		1,228,327			1,411,940			1,630,027			15.45	%		32.70	%
Total past due loans		1,832,702			2,104,077			2,597,221			23.44	%		41.72	%
Allowance for loans interest losses		3,249,639			3,689,353			4,065,530			10.20	%		25.11	%
Past due loans to total loans		2.62	%		2.68	%		2.90	%
Non-performing loans as a percentage of total loans		1.76	%		1.80	%		1.82	%
“C”, “D” and “E” loans as a percentage of total loans		3.96	%		3.91	%		4.11	%
Allowances to past due loans(2)		177.31	%		175.34	%		156.53	%
Allowance for loan  losses as a percentage of “C”, “D” and “E” loans (2)		117.35	%		120.33	%		110.54	%
Allowance for loan losses as a percentage of non-performing loans(2)		264.56	%		261.30	%		249.41	%
Allowance for loan losses as a percentage of total loans		4.64	%		4.70	%		4.54	%
Percentage of performing loans to total loans		98.24	%		98.20	%		98.18	%

(1)"Performing" past due loans are loans upon which Bancolombia continues to recognize income although interest in respect of such loans has not been received. Mortgage loans cease to accumulate interest on the statement of operations when they are more than 60 days past due. For all other loans and financial leasing operations of any type, interest is no longer accumulated after they are more than 30 days past due.

(2) Under Colombian Bank regulations, a loan is past due when it is at least 31 days past the actual due date.

8

4Q13

PDL Per Category (30 days)
	% de la cartera total			4Q12			3Q13			4Q13
Commercial loans		58.53	%		1.48	%		1.55	%		1.75	%
Consumer loans		18.56	%		4.80	%		4.80	%		4.73	%
Microcredit		0.58	%		9.32	%		10.30	%		9.89	%
Mortgage loans		11.51	%		6.86	%		6.13	%		6.22	%
Finance lease		10.82	%		1.84	%		2.31	%		2.09	%
PDL TOTAL		100.00	%		2.62	%		2.68	%		2.90	%

PDL Per Category (90 days)
	% de la cartera total			4Q12			3Q13			4Q13
Commercial loans		58.53	%		1.16	%		1.09	%		1.13	%
Consumer loans		18.56	%		2.55	%		2.42	%		2.30	%
Microcredit		0.58	%		5.81	%		7.27	%		6.52	%
Mortgage loans		11.51	%		2.97	%		2.81	%		2.39	%
Finance lease		10.82	%		1.36	%		1.33	%		1.28	%
TOTAL LOAN PORTFOLIO		100.00	%		1.62	%		1.54	%		1.54	%

LOANS AND FINANCIAL LEASES CLASSIFICATION
( COP millions)	4Q12					3Q13					4Q13
¨A¨ Normal		65,453,223		93.52	%		73,087,284		93.20	%		82,576,481		92.31	%
¨B¨ Subnormal		1,766,262		2.52	%		2,263,565		2.89	%		3,205,115		3.58	%
¨C¨ Deficient		1,179,600		1.69	%		1,292,074		1.65	%		1,590,505		1.77	%
¨D¨ Doubtful recovery		948,051		1.35	%		1,045,062		1.33	%		1,213,257		1.36	%
¨E¨ Unrecoverable		641,543		0.92	%		728,985		0.93	%		874,184		0.98	%
Total		69,988,679		100.00	%		78,416,970		100.00	%		89,459,542		100.00	%
Loans and financial leases classified as C, D and E as a percentage of total loans and financial leases		3.96	%				3.91	%				4.11	%

2.5. Operating Expenses

During 4Q13, operating expenses totaled COP 1,207 billion, increasing 5.6% with respect to 3Q13 and 14.4% with respect to 4Q12.

Personnel expenses (salaries, bonus plan payments and compensation) totaled COP 393 billion in 4Q13, decreasing 2.5 % as compared to 3Q13 and 3.0% as compared to 4Q12. This reduction is explained by lower bonuses payments as well as the little growth in the number of employees

During 4Q13, administrative expenses totaled COP 660 billion, increasing 14.3% as compared to 3Q13 and 24.8% as compared to 4Q12. This variation during the year is mainly explained by the costs of integration of Banistmo, higher rent expenses, higher taxes (other than income tax),higher amortization of capitalized expenses and higher expenses for maintenance of fixed assets.

Depreciation expenses totaled COP 119 billion in 4Q13, increasing 7.0% as compared to 3Q13 and 32.1% as compared to 4Q12. The increase in this type of expense is explained by the increase of operating leases from Leasing Bancolombia whose assets given on lease are depreciated.

At the end of 4Q13, Bancolombia had 28,759 employees, 1,090 branches and 4,310 ATMs.

9

4Q13

3. BANCOLOMBIA Company Description (NYSE: CIB)

GRUPO BANCOLOMBIA is a full service financial conglomerate incorporated in Colombia that offers a wide range of banking products and services to a diversified individual and corporate customer base of more than 9 million customers. GRUPO BANCOLOMBIA delivers its products and services via its regional network comprised of: Colombia’s largest non-government owned banking network, El Salvador’s leading financial conglomerate (Banagricola S.A.), off-shore and local (Banistmo S.A.) banking subsidiaries in Panama, Cayman and Puerto Rico. Together, BANCOLOMBIA and its subsidiaries provide stock brokerage, investment banking, leasing, factoring, consumer finance, fiduciary and trust services, asset management, among others.

Contact Information

Bancolombia’s Investor Relations

Phone:(574) 4041837 / (574) 4041838

E-mail:investorrelations@bancolombia.com.co

Alejandro Mejia (IR Manager) / Simon Botero (Analyst)

Website:http://www.grupobancolombia.com/investorRelations/

10

4Q13

BALANCE SHEET
(COP million)	Dec-12		Sep-13		Dec-13		Last Quarter			Annual			% of Assets			% of Liabilities
ASSETS
Cash and due from banks		7,144,015		8,439,492		11,427,441		35.40	%		59.96	%		8.74	%
Overnight funds and interbank loans		1,025,082		4,267,357		3,981,205		-6.71	%		288.38	%		3.04	%
Total cash and equivalents		8,169,097		12,706,849		15,408,646		21.26	%		88.62	%		11.78	%
Debt securities		11,432,214		13,288,857		12,136,179		-8.67	%		6.16	%		9.28	%
Trading		6,492,812		8,114,463		6,537,697		-19.43	%		0.69	%		5.00	%
Available for Sale		1,456,042		1,555,171		1,803,144		15.95	%		23.84	%		1.38	%
Held to Maturity		3,483,360		3,619,223		3,795,338		4.87	%		8.96	%		2.90	%
Equity securities		1,136,256		1,241,511		1,680,237		35.34	%		47.87	%		1.28	%
Trading		327,091		412,532		411,987		-0.13	%		25.95	%		0.31	%
Available for Sale		809,165		828,979		1,268,250		52.99	%		56.74	%		0.97	%
Allowance for impairment		-14,159		-7,020		-10,626		51.37	%		-24.95	%		-0.01	%
Net investment securities		12,554,311		14,523,348		13,805,790		-4.94	%		9.97	%		10.55	%
Commercial loans		42,465,660		47,563,831		52,363,519		10.09	%		23.31	%		40.03	%
Consumer loans		12,580,661		14,115,106		16,601,890		17.62	%		31.96	%		12.69	%
Small business loans		334,591		393,456		516,767		31.34	%		54.45	%		0.40	%
Mortgage loans		5,957,824		7,093,609		10,295,930		45.14	%		72.81	%		7.87	%
Financial leases		8,649,943		9,250,968		9,681,436		4.65	%		11.92	%		7.40	%
Allowance for loan and financial lease losses		-3,249,639		-3,689,353		-4,065,530		10.20	%		25.11	%		-3.11	%
Net total loans and financial leases		66,739,040		74,727,617		85,394,012		14.27	%		27.95	%		65.28	%
Accrued interest receivable on loans and financial leases		578,067		622,991		624,317		0.21	%		8.00	%		0.48	%
Allowance for accrued interest losses		-54,026		-61,803		-63,745		3.14	%		17.99	%		-0.05	%
Net total interest accrued		524,041		561,188		560,572		-0.11	%		6.97	%		0.43	%
Customers' acceptances and derivatives		783,014		598,237		602,409		0.70	%		-23.07	%		0.46	%
Accounts receivable, net		1,243,263		1,538,437		1,537,218		-0.08	%		23.64	%		1.18	%
Premises and equipment, net		1,341,698		1,569,253		2,191,677		39.66	%		63.35	%		1.68	%
Foreclosed assets, net		84,818		97,581		103,565		6.13	%		22.10	%		0.08	%
Prepaid expenses and deferred charges, net		772,930		547,638		690,932		26.17	%		-10.61	%		0.53	%
Goodwill		571,373		573,608		3,589,203		525.72	%		528.17	%		2.74	%
Premises and equipment under operating leases, net		2,191,928		2,826,134		2,919,181		3.29	%		33.18	%		2.23	%
Other assets		2,088,947		2,419,752		2,590,110		7.04	%		23.99	%		1.98	%
Reappraisal of assets		851,920		978,694		1,422,926		45.39	%		67.03	%		1.09	%
Total assets		97,916,380		113,668,336		130,816,241		15.09	%		33.60	%		100.00	%
LIABILITIES AND SHAREHOLDERS' EQUITY
LIABILITIES
DEPOSITS
Non-interest bearing		9,798,874		9,217,936		14,680,487		59.26	%		49.82	%		11.22	%		12.41	%
Checking accounts		8,820,458		8,502,923		13,617,057		60.15	%		54.38	%		10.41	%		11.51	%
Other		978,416		715,013		1,063,430		48.73	%		8.69	%		0.81	%		0.90	%
Interest bearing		54,359,846		62,795,570		71,876,092		14.46	%		32.22	%		54.94	%		60.75	%
Checking accounts		2,478,443		3,161,616		3,167,876		0.20	%		27.82	%		2.42	%		2.68	%
Time deposits		24,767,489		30,227,429		34,058,452		12.67	%		37.51	%		26.04	%		28.78	%
Savings deposits		27,113,914		29,406,525		34,649,764		17.83	%		27.79	%		26.49	%		29.28	%
Total deposits		64,158,720		72,013,506		86,556,579		20.19	%		34.91	%		66.17	%		73.15	%
Overnight funds and interbank borrowings		44,935		2,185,843		1,124,802		-48.54	%		2403.18	%		0.86	%		0.95	%
Bank acceptances outstanding and derivatives		625,632		455,051		464,514		2.08	%		-25.75	%		0.36	%		0.39	%
Other interbank borrowings		1,803,665		6,338,644		7,876,792		24.27	%		336.71	%		6.02	%		6.66	%
Borrowings from development and other domestic banks		3,467,843		3,984,814		4,631,300		16.22	%		33.55	%		3.54	%		3.91	%
Accounts payable		2,311,221		1,882,304		2,611,114		38.72	%		12.98	%		2.00	%		2.21	%
Accrued interest payable		523,655		561,695		610,511		8.69	%		16.59	%		0.47	%		0.52	%
Other liabilities		888,190		780,879		1,250,757		60.17	%		40.82	%		0.96	%		1.06	%
Long-term debt		12,059,219		12,331,172		12,328,275		-0.02	%		2.23	%		9.42	%		10.42	%
Accrued expenses		344,951		1,057,542		423,303		-59.97	%		22.71	%		0.32	%		0.36	%
Minority interest		81,394		77,199		445,448		477.01	%		447.27	%		0.34	%		0.38	%
Total liabilities		86,309,425		101,668,649		118,323,395		16.38	%		37.09	%		90.45	%		100.00	%
SHAREHOLDERS' EQUITY
Subscribed and paid in capital		425,914		425,914		425,914		0.00	%		0.00	%		0.33	%
Retained earnings		10,250,192		10,748,889		11,253,148		4.69	%		9.78	%		8.60	%
Appropiated		8,548,146		9,820,186		9,802,509		-0.18	%		14.67	%		7.49	%
Unappropiated		1,702,046		928,703		1,450,639		56.20	%		-14.77	%		1.11	%
Reappraisal of assets		894,206		829,433		853,454		2.90	%		-4.56	%		0.65	%
Gross unrealized net gain on investments		36,643		-4,549		-39,670		772.06	%		-208.26	%		-0.03	%
Total shareholder's equity		11,606,955		11,999,687		12,492,846		4.11	%		7.63	%		9.55	%

11

4Q13

INCOME STATEMENT	As of						Growth												Growth
(COP million)	Dec-12			Dec-13			Dic-13/Dic-12			4Q12			3Q13			4Q13			4Q13/3Q13			4Q13/4Q12
Interest income and expenses
Interest on loans		6,047,906			6,730,380			11.28	%		1,603,351			1,661,695			1,821,119			9.59	%		13.58	%
Interest on investment securities		759,513			489,528			-35.55	%		202,004			95,030			99,396			4.59	%		-50.80	%
Overnight funds and interbank loans		24,178			26,900			11.26	%		6,163			6,375			8,970			40.71	%		45.55	%
Financial leases		830,286			883,876			6.45	%		222,690			216,028			222,198			2.86	%		-0.22	%
Total interest income		7,661,883			8,130,684			6.12	%		2,034,208			1,979,128			2,151,683			8.72	%		5.77	%
Interest expense
Checking accounts		24,931			29,403			17.94	%		6,244			7,377			7,119			-3.50	%		14.01	%
Time deposits		1,117,435			1,330,439			19.06	%		324,736			319,342			357,034			11.80	%		9.95	%
Savings deposits		659,355			642,616			-2.54	%		169,576			151,586			142,083			-6.27	%		-16.21	%
Total interest on deposits		1,801,721			2,002,458			11.14	%		500,556			478,305			506,236			5.84	%		1.13	%
Interbank borrowings		50,209			77,995			55.34	%		9,025			22,887			31,494			37.61	%		248.96	%
Borrowings from development and other domestic banks		220,096			223,193			1.41	%		58,658			55,717			58,437			4.88	%		-0.38	%
Overnight funds		97,620			61,104			-37.41	%		28,592			9,965			19,113			91.80	%		-33.15	%
Long-term debt		725,214			757,376			4.43	%		197,289			192,054			187,857			-2.19	%		-4.78	%
Total interest expense		2,894,860			3,122,126			7.85	%		794,120			758,928			803,137			5.83	%		1.14	%
Net interest income		4,767,023			5,008,558			5.07	%		1,240,088			1,220,200			1,348,546			10.52	%		8.75	%
Provisions for loans and accrued interest losses and other receivables , net		(1,240,339	)		(1,394,075	)		12.39	%		(356,609	)		(326,879	)		(327,858	)		0.30	%		-8.06	%
Recovery of charged-off loans		167,819			231,396			37.88	%		44,195			52,279			69,412			32.77	%		57.06	%
Provision for foreclosed assets and other assets		(118,961	)		(152,802	)		28.45	%		(42,862	)		(32,281	)		(37,347	)		15.69	%		-12.87	%
Recovery of provisions for foreclosed assets and other assets		80,608			84,881			5.30	%		20,599			17,648			22,874			29.61	%		11.04	%
Total net provisions		(1,110,873	)		(1,230,600	)		10.78	%		(334,677	)		(289,233	)		(272,919	)		-5.64	%		-18.45	%
Net interest income after provision for loans
and accrued interest losses		3,656,150			3,777,958			3.33	%		905,411			930,967			1,075,627			15.54	%		18.80	%
Commissions from banking services		449,452			469,896			4.55	%		124,317			123,366			104,963			-14.92	%		-15.57	%
Electronic services and ATM fees		73,887			87,516			18.45	%		19,608			19,243			29,571			53.67	%		50.81	%
Branch network services		126,356			135,474			7.22	%		34,098			34,696			38,628			11.33	%		13.29	%
Collections and payments fees		256,503			283,788			10.64	%		70,415			71,232			77,784			9.20	%		10.47	%
Credit card merchant fees		9,684			8,295			-14.34	%		3,248			2,490			2,697			8.31	%		-16.96	%
Credit and debit card fees		654,900			731,095			11.63	%		160,488			170,889			225,767			32.11	%		40.68	%
Checking fees		72,636			70,261			-3.27	%		17,860			17,577			17,653			0.43	%		-1.16	%
Trust activities		208,583			207,994			-0.28	%		54,859			46,730			49,046			4.96	%		-10.60	%
Brokerage fees		63,631			62,615			-1.60	%		18,148			11,651			12,878			10.53	%		-29.04	%
Check remittances		22,120			44,368			100.58	%		5,766			5,618			28,341			404.47	%		391.52	%
International wire transfers		71,932			62,921			-12.53	%		24,109			19,901			17,253			-13.31	%		-28.44	%
Fees and other service income		2,009,684			2,164,223			7.69	%		532,916			523,393			604,581			15.51	%		13.45	%
Fees and other service expenses		(202,644	)		(247,867	)		22.32	%		(38,437	)		(62,853	)		(79,563	)		26.59	%		107.00	%
Total fees and income from services, net		1,807,040			1,916,356			6.05	%		494,479			460,540			525,018			14.00	%		6.18	%
Other operating income
Foreign exchange gain (loss), net		103,953			94,595			-9.00	%		24,578			25,989			62,889			141.98	%		155.88	%
Gains on forward contracts in foreign currency		58,902			27,320			-53.62	%		14,968			23,802			7,613			-68.02	%		-49.14	%
Gains on sales of investments in equity securities		82,187			3,780			-95.40	%		(2,176	)		(3,205	)		4,916			253.39	%		325.92	%
Gains on sales of mortgage loans		43,146			31,593			-26.78	%		7,691			5,703			5,758			0.96	%		-25.13	%
Dividend income		47,610			63,007			32.34	%		1,750			7,303			8,402			15.05	%		380.11	%
Income from non-financial subsidiaries		147,304			143,893			-2.32	%		36,598			34,349			36,605			6.57	%		0.02	%
Insurance income		-			10,164			0.00	%		-			-			10,164			0.00	%		0.00	%
Communication, postage, rent and others		349,995			465,773			33.08	%		112,842			123,231			121,443			-1.45	%		7.62	%
Total other operating income		833,097			840,125			0.84	%		196,251			217,172			257,790			18.70	%		31.36	%
Total income		6,296,287			6,534,439			3.78	%		1,596,141			1,608,679			1,858,435			15.53	%		16.43	%
Operating expenses
Salaries and employee benefits		1,394,027			1,467,780			5.29	%		360,405			370,876			367,606			-0.88	%		2.00	%
Bonus plan payments		204,201			154,550			-24.31	%		34,549			22,877			16,730			-26.87	%		-51.58	%
Indemnities benefits		39,452			33,965			-13.91	%		9,827			9,250			8,395			-9.24	%		-14.57	%
Administrative and other expenses		2,040,223			2,327,908			14.10	%		528,454			577,173			659,745			14.31	%		24.84	%
Insurance on deposits, net		105,675			135,816			28.52	%		29,311			48,446			34,462			-28.87	%		17.57	%
Donation expenses		13,512			11,525			-14.71	%		2,433			3,807			1,545			-59.42	%		-36.50	%
Depreciation		319,602			428,856			34.18	%		89,999			111,073			118,886			7.03	%		32.10	%
Total operating expenses		4,116,692			4,560,400			10.78	%		1,054,978			1,143,502			1,207,369			5.59	%		14.44	%
Net operating income		2,179,595			1,974,039			-9.43	%		541,163			465,177			651,066			39.96	%		20.31	%
Goodwill amortization (1)		45,690			78,880			72.64	%		11,165			12,745			38,335			200.78	%		243.35	%
Non-operating income (expense)
Other income		148,751			233,721			57.12	%		42,892			48,712			99,878			105.04	%		132.86	%
Minority interest		(5,723	)		(17,364	)		203.41	%		(701	)		(4,901	)		(9,981	)		103.65	%		1323.82	%
Other expense		(107,813	)		(179,294	)		66.30	%		(36,056	)		(48,498	)		(69,836	)		44.00	%		93.69	%
Total non-operating income		35,215			37,063			5.25	%		6,135			(4,687	)		20,061			528.01	%		226.99	%
Income before income taxes		2,169,120			1,932,222			-10.92	%		536,133			447,745			632,792			41.33	%		18.03	%
Income tax expense		(467,074	)		(417,095	)		-10.70	%		(68,371	)		(123,820	)		(144,052	)		16.34	%		110.69	%
Net income		1,702,046			1,515,127			-10.98	%		467,762			323,925			488,740			50.88	%		4.48	%

12